Despite some Mexican longs mills' continued efforts to encourage sales activity, domestic prices in the Mexican longs market have remained flat since last week.
Rebar buyers in Mexico comment that although some mills have stopped production and offers of rebar temporarily and are claiming to be booked for the time being, most suspect the prices will not register an increase in the near-future. Rebar buyers in Mexico are generally in no hurry to make any immediate purchases as most still have material in their inventories and consumption remains weak. Earlier this month, mills also tried to raise prices for rebar and wire rod, but little if any of this increase was accepted by the market.
Also, while activity in Mexico's longs market remains weak, rebar sales of Mexico's biggest trading partner, the US, are just as weak if not weaker. Therefore, Mexican rebar import offers to the US are still slightly above US buyers' price expectations and there is very little interest in Mexican product other than perhaps for small and quick delivery orders.
Most transactions in the domestic Mexican rebar market trended sideways since last week at the level of Peso 8,200 to 8,400/mt (US$614 to $631/mt). Prices are delivered to customers locations, plus taxes.
Domestic low carbon wire rod transaction prices in the Mexican market are also unchanged from last week and range from Peso 8,500 to 8,800/mt (US$639 to $661/mt) delivered, plus taxes. Mesh quality wire rod sells at slightly less than this range.
Meanwhile, the Mexican peso has continued to weaken against the US dollar since last week, bringing Mexican domestic longs prices slightly down on a dollar basis.
The construction sector in Mexico generally remains soft, with the country's domestic construction index last week recording a drop in activity in July from June. Still, there are at least some public works projects that continue to progress – Mexico's Transportation and Communication Ministry said in a statement Sunday that the government has invested in 125 civil engineering projects to improve the nation's highway this year, 30 of which were completed by the end of August. The government hopes the nation's improved highways will help boost the country's trade.